Blackmoresboosted by healthy sales

Vitamin company
Blackmores
said strong sales from its Australian and Asian operations and new product innovation helped drive a 7 per cent lift in first-half net profit to $12.8 million.

Blackmores chief executive Christine Holgate said the company added more than 250 distribution points in the six months to December 31, and registered over 40 new products.

“Our Australian sales increased by 14 per cent, representing growth approximately double that of the industry," Ms Holgate said.

She said the 11 per cent increase in the company’s Asian sales was helped by the rising Australian dollar.

“It is particularly pleasing that our two core markets in the region, Thailand and Malaysia, in constant currency terms, have grown by 30 per cent in the first half," Ms Holgate said.

In addition to launching new products, Blackmores completed a review of all product labels, branding and merchandising in Asia.

Ms Holgate said the company’s new facility in Warriewood, on Sydney’s Northern Beaches, processes up to 82,000 units per day, up from an average 50,000 units per day at the previous facility.

“We are conscious that our larger retail partners are expecting the retail sector to slow in coming months," warned Ms Holgate, citing the lack of government stimulus and rising interest rates as possible reasons for a slow-down in consumer spending.